System and process for sampling diamonds to develop a multi-dimensional space structure

ABSTRACT

The application describes generation of a data structure that enables comparison of any diamond to any other diamond. The data structure is generated via a sampling process and a computer system for acquisition of diamonds of a valid statistical sample having a predefined sample size. The process comprises tabulating the frequencies that diamonds of various grade combinations are available in an overall population of diamonds, then using a bidding process described herein to acquire a valid statistical sample of diamonds. The data for the sample of diamonds are then inputted into a Linear Programming and Mixed-Integer optimizer configured to sort all diamonds of the sample into sets with a median that is a minimal distance from the median on a scarcity basis, subject to various constraints, such as the number of diamonds in each set and a minimum total carat weight.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional Application Nos.62/930,420; 62/930,391; 62/930,396; 62/930,425; 62/930,483; and62/930,405; all filed Nov. 4, 2019, and each of which is incorporatedherein by reference in its entirety.

TECHNICAL FIELD

This disclosure relates to a system and process for generating a sampleof natural diamonds across a spectrum of grades corresponding to thenatural scarcity of such diamonds in order to instigate a data structurethat describes diamonds in relation to one another.

BACKGROUND OF THE INVENTION

Traditionally, true currencies have three characteristics: reliablestore of value, utility acceptability, and price stability. A store ofvalue is the function of an asset that can be saved, retrieved andexchanged at a later time, and be predictably valuable when retrieved.Stable coins necessarily require trust and centralization, requiringactors such as trusted issuers, custodians, auditors/authenticators, andgovernments. However, this undermines the key value of the blockchain,which is a decentralized ledger.

Bitcoin, the first implementation of a cryptographic currency based onthe Satoshi Nakamoto blockchain system, has been a wildly successfulproof of concept. However, Bitcoin has also exposed its numerousdeficiencies, including: lack of asset backing, resulting in volatilityand consumer skepticism; singular network, with inefficientproof-of-work protocol; lack of scalability due to high transactioncosts and low transaction rate, precluding the primary intended use, asa means of payment; inelastic fixed supply, ensuring deflation,volatility and hoarding; opportunity for fraud, price manipulation, washtrades and fake volume; lack of recourse for theft, inheritance or lostkeys; lack of interoperability with advancing network technologies; lackof regulatory features, resulting in governmental repudiation;unfairness of initial distributions to early adopters; and advantagesgained by localized, subsidized miners.

Stable coins attempt to solve the primary deficiency of Bitcoin—which isthe lack of a store of value. For example, Tether, a token pegged to theU.S. Dollar and originally operated in the Bitcoin network, is the mostpopular stable coin. Tether, and most other current stable coins havedeficiencies, including: a central authority is entrusted to manage theasset reserve; a central authority is entrusted to issue the tokens; onecustodian, or a small number, is entrusted to hold the asset reserve; anauditor is entrusted to confirm the reserve; an assayer is entrusted toauthenticate the reserve; the transactions are limited to one blockchainnetwork; a government, IRS, or judge can disable a centralized stablecoin easily; and pegging the stable coin to a fiat currency or currencybasket, inherits the risk of politically driven manipulation of thosecurrencies. Particularly with respect to pegging to a fiat currency, acore goal of cryptocurrency is to reduce the political risk, which hasinevitably resulted in manipulation of the money supply to consolidatepower—fiat backed stable coins defeats this cornerstone of having acryptocurrency.

Therefore, what is needed is a crowdsourced decentralized reservecomprised of a real asset-backed commodity that resolves the foregoingdeficiencies of the Bitcoin and stable coins. Natural diamond, while itis a uniquely dense-value asset and could be the ideal asset-backedcommodity, the diamond industry is affected by the age-old problem thatdiamonds are not fungible. The prices of seemingly identical diamondscan vary in price considerably. Valuation of diamonds cannot be done onthe spot. Authentication of diamonds that are actively traded poses anespecially serious problem of authentication, including the substitutionof fake or non-genuine diamonds for real diamonds, given the thousandsof dollars price tag of individual diamonds.

Moreover, the supply chain for diamonds is opaque, high friction, andinefficient. Presently, creating a marketplace in diamonds iscompromised by counterfeit items in the supply chain or channels. Thepossibility of counterfeits creates the potential for unacceptablelosses to purchasers, causing friction in trade and limiting the marketto few sophisticated participants. A second difficulty with creating amarketplace for diamonds is that owners may typically want to storetheir diamond merchandise with a third party, for example, a diamondwarehouse, but require an authentic, convenient and highly reliablesystem for ascertaining that the specific goods are being held asagreed, without relying on the naked assurance of a third party alone.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram illustrating a diamond-backed commodityexchange.

FIG. 2 illustrates an example system architecture enabling thediamond-backed commodity exchange.

FIG. 3 is a diagram illustrating an example architecture of tokens usedin the commodity exchange.

FIGS. 4A-E illustrate example embodiments of the diamond commodity.

FIGS. 5A and 5B show example embodiments of the smart cabinets.

FIG. 6A is a block diagram illustrating a system architecture forperforming transactions within a diamond-backed commodity exchange.

FIG. 6B is a flowchart depicting a process for registering an assettoken on a blockchain.

FIGS. 7A-7E are screenshots of an example mobile application executed bya device of the owners of a diamond commodity and its associated token.

FIGS. 8A-8B show example screenshots from a web application executed bya device of the owners of a diamond commodity and its associated token.

FIG. 9 illustrates a set of parameters associated with diamond searchand bid.

FIG. 10 a flowchart depicting a process of searching for a subset ofdiamonds based on a target diamond and thresholds.

FIG. 11 shows a process used to acquire a sufficiently large andstatistically valid sample of diamonds from an exchange or a group ofcompetitive diamond suppliers.

FIGS. 12A and 12B illustrate example of the exclusion ranges for atwo-factor combination—the factors are color and carat weight.

FIG. 13 illustrates a diagrammatic representation of a computing devicewithin which a set of instructions for causing the computing device toperform the methods discussed herein may be executed.

DETAILED DESCRIPTION OF THE DRAWINGS System Overview

FIG. 1 is a schematic diagram illustrating a diamond-backed commodityexchange, according to some embodiments. The exchange includes acentralized limit order book, listing a variety of types of naturaldiamonds across a range of diamond quality. Members of the exchange canaccess the order book to view prices of diamonds or trade theirdiamond-backed commodities. The diamonds are associated withcryptographic tokens that can be traded on the exchange.

As shown in FIG. 1, the exchange can be centered around a diamondstandard market maker system. The market maker system can include on ormore computing devices (such as a personal computer, a server, or adistributed computing system) that can maintain the order book andfacilitate interactions between other entities in the commodityexchange.

The exchange connects sellers and buyers of diamonds to solve problemsboth in the diamond industry and with existing cryptocurrencies. Theexchange creates a fungible diamond commodity and a member- andnetwork-owned electronic exchange to price and supply diamondsefficiently, improving the sales process for entities such as diamondmanufacturers, diamond brokers, and diamond dealers. The exchange alsocreates a cryptographic asset that has a value backed by the value of aphysical asset, improving the universality and reducing the volatilityof the cryptographic asset over conventional cryptographic currencies.

The market maker system can be used by a trader to purchaser samples ofdiamonds across a range of possible properties of the diamonds. Thediamonds can be sorted into sets. In some embodiments, the sets caninclude diamonds of similar scarcity, determined for example based onnatural frequency of each diamond's properties over a specified periodof time (e.g., 50 years).

In some embodiments, the market maker system bids on a range of diamondtypes to purchase a valid statistical sample of diamonds. The marketmaker system can automatically raise and lower bids for different typesof diamonds as bids are accepted or rejected. As bids are accepted, themarket maker system can cancel bids for similar diamonds until a sampleof diamonds is acquired that has a median achieving a specified standardwithin a threshold margin of error (e.g., 2%).

Embodiments herein are described with respect to physical diamondcommodities that asset-back cryptographic tokens in the commodityexchange. However, systems and methods described herein can instead beimplemented using other physical commodities instead of or in additionto diamonds to asset-back the commodity exchange, such as other gems orprecious metals.

FIG. 2 illustrates an example system architecture enabling thediamond-backed commodity exchange. A diamond commodity is created usinga set of diamonds selected by the market maker system. The diamondcommodity incorporates the set of diamonds into tamper-proof packagingwith an encryption chip that can be queried to demonstrate ownership ofthe commodity. The diamond commodity is described further with respectto FIG. 4.

The diamond commodity can be purchased by a person or entity, referredto herein as an “owner,” and either maintained for personal use orregistered to the commodity exchange. If the owner desires to registerthe commodity to the exchange, the commodity can be deposited with acustodian. The custodian stores the commodity in a smart cabinetconfigured to query the encryption chip in the commodity wheneverownership needs to be demonstrated.

Once the diamond commodity has been registered to the exchange, a tokencan be generated to represent the owner's ownership of the commodity.The token can be used on one or more blockchain platforms to conducttransactions on the blockchains. In some embodiments, a single token isgenerated for each registered diamond commodity, and no tokens are usedin the exchange that are not backed by a corresponding diamondcommodity. The value of a token can be represented as a specified numberof coins of a cryptographic currency.

In some embodiments, transactions in the exchange use smart contractsassociated with the tokens. One or more application programminginterfaces (APIs) can be used to access the blockchains to writecontracts to a blockchain or access a contract stored on the blockchainto effect a transaction. An API can also be used to query the diamondcommodities stored by custodians, allowing owners to remotely audit thecommodities. The APIs can be executed by any computing devices used byowners, custodians, or other parties to the exchange.

When a transaction is conducted in the commodity exchange, the diamondcommodity is queried to verify its ownership and the encrypted chip onthe diamond commodity signs the smart contract. The contract can also besigned by the owner of the commodity and, in some cases, the custodianholding the commodity. Once the contract has been signed by thecommodity itself as well as the owner and/or custodian, the contract isexecuted to perform the transaction. Signatures by the commodity or thecustodian holding the commodity, in addition to a signature by theownership, improves security of the transactions by reducing thelikelihood of theft of the asset token. For example, theft of thediamond commodity does not itself transfer ownership of the token backedby the commodity. Similarly, a stolen owner's private key does not grantthe thief the ability to conduct transactions backed by the commoditywithout the custodian or the commodity itself signing the transaction.Furthermore, if transactions related to the asset token are disputed,physical removal of the diamond commodity from the custodian can freezethe token until the dispute has been resolved.

The token associated with a diamond commodity can be used for a widevariety of digital applications. For example, the token can be attachedto a transaction as a lien, enabling the owner to pledge the token andits underlying diamond commodity to asset-back a cryptographictransaction. The lien feature enables the token to be used as a securityfor any trade, loan, sale, or other smart contract on a blockchainplatform. As another example, the token or diamond commodity may beloaned to a decentralized reserve to asset-back transactions. The ownercan collect a fee for the loan or split a fee with a custodian who loansthe commodity to the reserve. Other example transactions allow the ownerto transfer ownership of the commodity and its token as a method ofpayment for goods or services.

FIG. 3 is a diagram illustrating an example architecture of tokens usedin the commodity exchange. As shown in FIG. 3, the diamond-backedcommodity exchange uses three digital tokens to manage transactions andownership in the exchange: an equity token, a utility token, and anasset token.

The equity token can be used to manage equity, dividends, and governanceof the commodity exchange. In some embodiments, equity tokens govern andreceive revenue from the commodity exchange ecosystem. Equity tokens canearn a share of revenue from the registration of certified diamonds, aswell as a share of fee revenue from trades of the diamonds on thecommodity exchange. The equity token can be on an equity blockchain.

The utility token can be used as credit for transaction fees within thecommodity exchange. Profits from transactions in the commodity exchangecan be distributed to owners of the equity tokens in the form of utilitytokens. The equity token owners can then sell utility tokens back to theexchange or to the market as the utility tokens are repurchased fordiamond registration or exchange fees by other users.

The asset token represents ownership of a physical diamond commodity.Each asset token can be tied to a specific physical diamond commodity,and each physical diamond commodity can be represented by one assettoken. When a physical diamond commodity is manufactured, the embeddedchip is registered in the authentication system and information aboutthe physical diamond commodity is stored on a master blockchain inassociation with the corresponding asset token. The physical diamondcommodity can be used as a portable asset offline, meaning that nodigital transactions backed by its value can take place. However, oncethe commodity has been deposited with a custodian, it becomes a fungibledigital asset that can be traded through the exchange.

FIGS. 4A-4C illustrate example embodiments of the diamond commodity.FIG. 4A illustrates a diamond commodity can be a coin or puck 400A,while FIG. 4B illustrates a diamond commodity can be a bar 400B. Thecoin 400A and the bar 400B each contain a set of certified diamonds 402,sealed with a wireless encryption chip 404 and taggants 406 forauthentication. In some embodiments, each coin 400A with the samenominal value contains a set of diamonds with an aggregate valueequivalent to the nominal value at the time of issuance.

To ensure authenticity of the diamonds, the diamond commodity mayincorporate visual and/or electronic tamper-evident means to detecttamper of the encased diamonds. For instance, FIGS. 4C-4E illustratesome tamper-evident measures that can be used with the commodity. FIG.4C illustrates a cross-sectional view of a coin. As shown, the diamonds402 are sealed in a puck 400A, which can be cast from a clear resin 408.Also sealed in the puck 400A are a plurality of luminescent taggants 406and a wireless encryption chip 404 with blockchain interface. Thewireless encryption chip 404 may be fitted with antenna such as NFC(near-field communication) and/or RFID (radio-frequency identification)for authentication via electronic devices such as a smart phone or asmart cabinet introduced herein. In some embodiments, the puck 400A is astandardized size. In the illustrative example of the figure, the puck400A has a 35 mm diameter and an 8 mm height.

As shown in FIG. 4D, to further prevent tampering or counterfeiting ofthe commodity, the puck 400A can include a distribution of taggants 406,such as microspheres, that dispersed randomly near the diamonds tocreate a visual pattern unique to each commodity. The taggants 406 canbe made from a variety of natural or synthetic materials, includingglass, polymer, or ceramic, and can be optically detectable in visibleor non-visible light spectra. The position of the taggants 406 relativeto reference objects, such as the diamonds 402, the other taggants, orthe edge 410 of the puck 400A can be registered and used forauthentication at a later time.

In some embodiments, the distribution of diamonds and taggants iscalculated on a basis of ratios. That is a comparative distance fromeach other element and/or the edge of the puck. In this manner, anoptical validation is performed where each distance is treated as avariable and each distance is solved for relative to other distances(which are similarly stored as unknown variables). Examples of when auser would perform the optical validation are during a trade of the puckbetween users who are within physical proximity of one another (e.g.,and can clearly validate that the other user is validating a physicalobject rather than a picture) or when a custodian initially takesphysical possession of a given puck and accepts liability for the puckand its contents.

In some embodiments, the smart contract associated with thecryptographic token linked to the puck includes a specified or knownphysical characteristic of the puck. The known physical characteristicis used during an optical validation of the puck to derive actualsizes/distances of the elements of the puck (e.g., diamonds andtaggants). For example, where the physical characteristic is a diameterof the diamonds, this known size may be used along with a derivedparallax from the optical sensor used (e.g., the camera on the mobiledevice) to derive every other length and size within the puck. Thus,rather than store each distance as a variable, exact, true-to-lifevalues are used.

In some embodiments, the specified or known physical characteristic isthe diameter of the puck where the diameter of the puck is astandardized value across all such pucks. Where a given value is sharedacross all pucks, there is little advantage in storing this valuespecifically with the smart contract associated with the specificcryptographic token linked to any given puck. Rather, the fixed size maybe included as part of the authentication protocol.

FIG. 4E shows the authentication of a commodity using a smart phone 412or a smart cabinet to communicate with the wireless encryption chip 404sealed in the puck (e.g., a physical unclonable function). In someembodiments, the chip could be a 1,024-bit encryption chip with 8 kBmemory, 1 ms read/write time, and 500,000 cycles per second. Theblockchain stores certification and transaction data, and physicalassets can be remotely audited during digital transactions associatedwith the diamond-backed tokens on the exchange.

Smart Cabinet

FIGS. 5A and 5B show example embodiments of a smart cabinet 500. In someembodiments, the smart cabinet 500 includes a secured cabinet casing 502having a plurality of retractable shelves 504. It should be noted thatthe dimension of the smart cabinet 500 is not restricted a single set ofdimensions. The dimension of the smart cabinet 500 can be builtdepending on the needs of the user, such as the custodian. In oneembodiment, the frame of the cabinet can be built using standard rackframes to facilitate installation of modularized shelves. The rackframes may be measured by rack units, which is a unit of measure definedas 1¾ inches (44.45 mm). For instance, the example smart cabinet shownin FIG. 5A is built using a standard 42U (rack unit) cabinet, which iscommonly used for server cabinets. In the other example shown in FIG.5B, the cabinet can also be built to other dimensions.

Each of the plurality of retractable shelves 504 also has a plurality ofcompartments 506 arranged thereon for storing the diamond commodities400 or other types of assets. For example, the particular smart 500cabinet shown in FIG. 5A enables storage of up 180 diamond commoditycoins or 640 diamond commodity bars. According to some embodiments, thedistance set between adjacent compartments is configured tosubstantially reduce interference between adjacent assets when they arein communications with a wireless sensor 508. The wireless sensor 508 isconfigured to interface with an encryption chip included in each securedcontainer 400 positioned on the retractable shelves 504.

The number of wireless sensors 508 installed in the cabinet can alsovary. In some of the embodiments, each of the compartment 506 has acorresponding wireless sensor 508 installed in the base of thecompartment to enhance the quality of communication between the wirelesssensor 508 and a wireless encryption chip. Alternatively, the smartcabinet 500 is fitted with fewer wireless sensors 508, or even a singlewireless sensor 508, to communicate with some or all of the storedassets 400, or other types of assets inside the smart cabinet 500.Depending on the technology used in the wireless encryption chips of thestored assets 400, the wireless sensor 508 can be designed to use one ormore types of communication technologies, including NFC (near-fieldcommunication) or RFID (radio frequency identification).

In some embodiments, the smart cabinet 500 includes one or more cameras512 positioned on the retractable shelves 504. In the figure, the camera512 is positioned on the inside of a front plate of the retractableshelves 504. The camera 512 may be similarly positioned by each wirelesssensor 504. The camera 512 may further include a lighting element toenable image capture in an otherwise dark cabinet. The camera 512 isused to capture image data of the assets 400 with sufficient resolutionto identify physical characteristics of each individual asset 400 at aprecision that enables derivation of an optical validation key. In someembodiments, the camera 512 is repositionable on a motorized track thatenables one or both or improved positioning to image a given asset 400and/or capturing a given asset 400 from multiple angles.

The smart cabinet also contains a processing system 510 which isconfigured to control the wireless sensors 508 and exchange data betweenthe processing system 510 and a remote authentication server. In someembodiments, the exchange of data includes receiving commands from andsending authentication results to the authentication server and/or asmart contract associated with tokens that correspond to each asset 400.In some embodiments, the smart cabinet 500 may act as a node on adistributed blockchain network having a respective public/privatekeypair. In some embodiments, the authentication server remotely auditsthe stored assets during every digital transaction. In otherembodiments, it is also possible to configure the processing system 510to spontaneous audit one or more stored assets (i.e., without firstreceiving a request from the authentication server). The occurrence ofsuch audits is either scheduled or randomized. In some embodiments auser can force a query, for example to a custodian, regarding the statusof a held asset 400. The query verifies the presence of the asset 400 inthe smart cabinet 500, and/or adjoins a transfer of ownership over theasset 400. During a transfer, perhaps from one user to another, thefirst user makes use of an application that transfers a cryptographictoken to the other user. In order to achieve the transfer, the custodianaffirms physical possession of the asset 400 via a query by the wirelesssensors 508 or the camera 512.

The smart cabinet also includes a network device to enable the exchangeof data between the processing system 510 and the authenticationserver/blockchain data structure; the types of network may include butis not limited to internet, cloud, wide area network, or local areanetwork.

Conducting Blockchain Transactions with a Diamond-Backed Token

FIG. 6A is a block diagram illustrating a system architecture forperforming transactions within a diamond-backed commodity exchange,according to some embodiments. The system architecture shown in FIG. 6Acan be similar to portions of the system architecture shown in FIG. 2.

As shown in FIG. 6A, the system can include interactions between amaster blockchain and one or more other blockchain platforms thatsupport transaction blockchains. In various embodiments, the masterblockchain can be a permissioned and open proof-of-stake blockchain(e.g., the EOS blockchain). The transaction blockchains can be built onany blockchain platform, public or private. One or more applicationprogramming interfaces (APIs) can be configured to access data stored onthe master blockchain and transaction blockchains. In some embodiments,both the custodian of a diamond commodity and the owner of the commodityhave devices that can execute an API to access blockchain data.

The master blockchain can record (601) the original issuance of assettokens, (602) that the commodity backing each asset token consumedregistered diamonds, purchased through the exchange with a transparentbid, and/or if an asset token is moved to a transaction blockchain, anidentifier of an address or other relevant information about the newlocation of the asset token. The puck may act as a hardware securitymodule using the positioning and/or size of the diamonds and taggants asa physical key (604). The hardware security module feature may be usedduring registration (603) and during transactions (605). Morespecifically, when a physical diamond commodity is first enrolled in thecommodity exchange, the commodity can be registered on the masterblockchain, by for example storing a smart contract associated with thetoken on the master blockchain. An asset token can be generated torepresent the commodity based on the specifications of the masterblockchain (608). As used herein, a “smart contract” is a set ofexecutable instructions, stored on a blockchain, that output a specifiedresult when a set of conditions have been satisfied. A process forregistering an asset token on a blockchain using a smart contract isdescribed further with respect to FIG. 6B.

The asset token can be moved to any other blockchain platforms at anytime (by, for example, registering new smart contracts on the otherblockchain platforms), enabling the owner of the token to use the tokenfor nearly any desired transaction (609). For example, an open API canbe used to deploy the token on any platform. If the token is moved fromthe master blockchain to a different platform, the fact of the token'smove can be recorded on the master blockchain.

Once a token has been deployed on a blockchain platform, smart contractsdeployed on the same platform attach to the asset token. For example, ifa token has been moved from the master blockchain to a transactionblockchain, a future user may be unable to deploy a smart contract onthe master blockchain to use the token in a transaction unless the tokenis returned to the master blockchain platform. Furthermore, in someembodiments, a token cannot be transferred to a different blockchainplatform if a lien is attached to the token.

The token can be used for any of a variety of different types oftransactions. As shown in FIG. 6A, these transactions may include, forexample, an online private sale of the token, an online sale by acustodian of the physical diamond asset backing the token, a frozenprivate sale, or any of a variety of lien transactions such as securinga loan, securing a contract, or backing a third-party trade (610). Forexample, the owner of a token may pledge the value of the diamondcommodity to take a loan. Alternatively, the owner can pledge thecommodity's value as a brokerage, allowing another to pledge the assetfor a loan or other purpose. If the owner instead trades the token, thetoken can be traded as any other cryptographic token, transferringownership of the private keys to another person. The custodian of thediamond commodity need not change, however.

To enable use of the token across multiple blockchain platforms, anytransactions associated with a token are signed by both the currentowner of the token (e.g., using the private key of the wallet of theowner) and the physical diamond asset (e.g., using the physicalcharacteristics of the diamonds/taggants or an encryption chip). Toconduct a transaction with a token, such as transferring ownership ofthe token to another person to pay for goods or services, the owner ofthe token can use the API (606) to access the smart contract on theblockchain where it is stored. The API can cause the diamond commodityto be queried, which signs the contract if the commodity is accessibleand capable of being used for the transaction. “Querying” the containeritself can take any combination of a number of forms ofauthorization/authentication. A first form involves querying theencryption chip. The encryption chip operates as a hardware securitymodule and includes a physical unclonable function. The physicalunclonable function acts as an additional key to be used during atransaction of the token associated with the container.

A second form involves querying the physical characteristics of thecontainer. Querying the characteristics of the container executes anoptical validation of the container using the API as associated with acamera. Optical validation uses the characteristics of the container toderive a key using a smart contract specified protocol, and/or aone-time password. The derived key and/or one-time password is used asan additional key during a transaction of the token. The characteristicsof the container include any of combination of the diamonds and taggantstherein, the position of each relative to one another and the containeredges, and the size of each.

While discussed above, instances of optical validation are performedwhile validating an object that was before the querying user, in otherembodiments, it is contemplated that a malicious actor may attempt tomerely use a pre-captured image of the container to derive the necessarykey/password. In those embodiments a number of protocol steps may betaken to improve security. First, the protocol of optical validation mayrequire that the image data used by the API is obtained in real-time as“view-finder data” from the camera. It is further contemplated that amalicious actor may merely use the camera to focus the viewfinder on apreexisting picture of the diamond container (e.g., a picture of apicture). However, because pictures do not have a 3D dimension,real-time rotation can validate whether the user is attempting to passoff a picture of a picture. Thus, in some embodiments, an additionalprotocol step is implemented that requires the user to rotate either ofthe container and/or the camera device. Either of express instructions(e.g., displayed on screen of the viewfinder) or ad hoc user drivenchoice of rotation may be implemented. Multiple perspectives of thecontainer captured by the API increase the likelihood that the containeris physically present. Where multiple perspectives are used, theprotocol may use additional data capture to supplement derivation of thekey/password.

Rotation of the device/camera may be further verified by input to anassociated accelerometer. Further computer vision techniques may beimplemented to identify and disqualify attempts that include framingaround the container (e.g., the border of a screen displaying a pictureof the container).

The custodian API may be implemented in a mobile device application(607). The owner of the token can also sign the contract using theowner's cryptographic key. The smart contract can be configured tooutput a desired result, such as transferring ownership of the token, inresponse to being signed by the diamond commodity and the owner.

The diamond commodity can be queried by a smart cabinet. When acommodity is held by an approved custodian, it can be stored in a smartcabinet featuring an array of wireless near-field communication (NFC)transceivers to audit and authenticate the commodities and performproof-of-asset verification. The smart cabinet may include a camera thatis on a movable track that can reposition and thus capture multipleperspectives of the secured container in accordance with the protocol ofsome embodiments of the described technique.

In some embodiments, the transfer of the token is authorized by an N ofM key scheme. For example, the token has authorization to transfer givensignatures from the private key of the containing wallet, and either ofthe optical validation and the encryption chip response. In anotherexample the token has authorization to transfer given signatures fromthe private key of the containing wallet and any two of: the opticalvalidation, the encryption chip response, or the private key of thesmart cabinet.

FIG. 6B is a flowchart depicting a process for registering an assettoken on a blockchain. The process shown in FIG. 6B can be performed bya computing device, such as a mobile device used by an owner of adiamond commodity, a computing device used by a custodian, or acentralized or distributed server. As described above, a physicaldiamond commodity includes a secured container housing one or morediamonds, visual taggants, and an encryption chip. The diamond commodityis linked to an asset token that can be attached to transactions whenthe token is deployed on a blockchain. An owner of a physical diamondcommodity can maintain possession of the commodity or deposit it with acustodian. In some implementations, the asset token is deployed on theblockchain for use in transactions when the physical diamond commodityis stored by a custodian. For example, the token is tradeable when thediamond commodity is stored in a custodian's smart cabinet, which iscapable of optically validating a physical layout of the commodity andquerying the encryption chip of the diamond commodity.

In step 620, as shown in FIG. 6B, the computer system retrieves a firstpublic key that is associated with the diamond commodity. The firstpublic key corresponds to a first private key stored on the diamondcommodity's encryption chip, such that the first private key can beauthenticated during a transaction using the first public key. In somecases, the encryption chip stores the first public key and the computersystem can query the encryption chip to retrieve the first public key,such as by instructing the smart cabinet to query the chip. In othercases, the computer system receives the first public key from the ownerof the physical diamond commodity or retrieves the first public key froma memory external to the diamond commodity.

In step 622, the computer system receives a second public key that isassociated with the owner of the diamond commodity. The second publickey corresponds to a second private key maintained by the owner, suchthat the owner's private key can be authenticated during a transactionusing the second public key. For example, the second private key ismaintained by the owner in a cryptographic wallet.

In step 624, the computer system receives an initial visual layout ofthe secured container. The initial visual layout, representing a visualappearance of the diamonds, the taggants, or both at the time thediamond commodity is deposited with the custodian, can be captured byany camera or imaging system capable of measuring the optical or visibleproperties of the secured container. For example, the owner of thediamond commodity can capture the initial visual layout using the cameraof the owner's mobile device and provide the initial visual layout tothe computer system when enrolling the asset token on the blockchain.Additionally or alternatively, the optical system of the custodian'ssmart cabinet captures the initial visual layout when the custodiantakes possession of the diamond commodity or in response to externalqueries. In this case, the computer system can query the smart cabinetto retrieve a previously-determined initial visual layout, to cause thesmart cabinet to determine the initial visual layout during the tokenregistration process, or both. In some embodiments, when registering theasset token to the blockchain, the computer system compares an initialvisual layout measured by the owner's device against an initial visuallayout measured by the custodian's smart cabinet, generating the smartcontract to deploy the asset token on the blockchain only if the owner'sand custodian's layouts are determined to match.

In step 626, the computer system generates a smart contract using thefirst public key, the second public key, and the initial visual layout.The smart contract is generated such that it enables a transactionassociated with the cryptographic token in response to an authorizationprocedure. Embodiments of the authorization procedure use variouscombinations of the first private key, the second private key, andvalidation of a current visual layout of the secured container. Forexample, the smart contract can be written to enable a transaction onlyif it is signed by the encryption chip using the first private key,signed by the owner using the second private key, and opticallyvalidated by the custodian's smart cabinet. Another example smartcontract enables a transaction if it is signed by the owner using thesecond private key and is either signed by the encryption chip oroptically validated by the smart cabinet.

In step 628, the computer system writes the smart contract to ablockchain, such as the master blockchain.

FIGS. 7A-7E are screenshots of an example mobile application executed bya device of the owners of a diamond commodity and its associated token.FIG. 7A lists the tokens owned by the owner, along with a value of thetokens, information about the custodian, and a mint date of the tokens.FIG. 7B shows an example screen for purchasing a token. FIGS. 7C-7D showexample screens that can be displayed when the owner is conducting asale of the token. As shown in FIG. 7C, the mobile application can querythe diamond commodity backing a token (e.g., using an API) to validatethe encryption chip on the commodity. As shown in FIG. 7D, the mobileapplication can cause an optical validation to be performed on thecommodity, for example verifying optically that the same number ofdiamonds are present, in the expected configuration, with an expectedarrangement of visual indicators (e.g., dots) disposed across thecommodity. FIG. 7E shows an example screen that can be displayed if theowner wants to perform a transaction to sell or pledge the token and itsassociated commodity.

FIGS. 8A-8B show example screenshots from a web application that can beused instead of or in addition to the mobile application described withrespect to FIG. 7. Features and actions enabled the website can include,for example:

Purchasing tokens and associated diamond commodities, and selectingwhether to take delivery of the commodity or choose a custodian;

Auditing diamond commodities stored with custodians;

Inspecting diamond certificates associated with commodities;

Transferring tokens to another address;

Arranging to take delivery;

Offering tokens for sale on the exchange;

Attaching a token to a smart contract; or

Providing or retracting asset lending agreements.

Centralized Order Book

The diamond exchange described with respect to FIGS. 1-3 can have anactive, one-sided market maker who bids for a wide variety of diamonds.The diamonds used for the exchange may have any combination ofproperties. These properties can include, for example, carat weight,color, clarity, fluorescence, cut, symmetry, and/or polish. In order toassemble a fair and transparent commodity, the trader purchases samplesof diamonds across the range of diamonds that may be used for thecommodity exchange. However, diamonds can be a difficult commodity toaccurately value because each diamond's particular combination ofproperties can be rare. Diamonds are further difficult to group andcategorize as a result of the various properties.

As a result, an order book formed around the properties of a particulardiamond has limited depth. Market prices for diamonds also may notlinearly or consistently follow minor variations in the diamonds'properties. Where securities tend to be fungible assets, diamonds arenot. While diamonds are not necessarily unique, there are relatively fewwith exact matching properties. As result, there is no market capabilityto obtain a “bulk rate.” However, a tolerance of variance from a targetposition with pre-calculated bid values for each potential diamondwithin the tolerance enables the new action of giving a diamond marketdepth of inventory.

Thus, for a trader who may purchase solely based on certified grade,without a visual inspection, determining a price to bid for a particulardiamond may be challenging. To assist traders in searching and biddingfor diamonds, the market maker system generates a centralized limitorder book that can be dynamically generated around a target diamond toaccurately price the target diamond.

Through use of a target diamond and thresholds established based on thevarious properties of the target diamond, a search engine can identify abetter grouping of search results.

Generally, a trader makes regular actionable bids for any type ofdiamond. These bids may be based on a gemological certificate associatedwith the diamond. The table below illustrates example bids that thetrader may place for diamonds with varying properties:

TABLE 1 Carats Color Clarity Flour Cut Sym Polish Bid 0.30 G VS1 None VGVG VG 375.50 0.31 G VS1 None VG VG VG 379.75 0.32 G VS1 None VG VG VG376.00 0.31 F VS1 None VG VG VG 381.25 0.31 H VS1 None VG VG VG 364.750.31 G VVS2 None VG VG VG 379.50 0.31 G VS2 None VG VG VG 370.75

The bids can be represented as a dynamic premium or discount (as apercentage) for every change in factor, relative to a target diamond.For example, the following table shows a target (bold) diamond. For eachproperty of the target diamond, the table shows a diamond with aproperty that is better than the target diamond and a correspondingpercentage premium of the better diamond (representing a differencebetween the price of the better diamond and the bid price of the targetdiamond, as a percentage). The bid value for the target diamond is basedon a previously made bid by the given trader. The bid value can be setin the search engine and further calculations are made stemming fromthis value. The table is populated by a plurality of completed pastbids.

Table 2 depicts a diamond with a property that is worse than the targetdiamond and a corresponding percentage discount of the worse diamond.The eight right most columns correspond to the columns of TABLE 1. Thepercentages and bid value displayed in TABLE 2 are illustrative and arenot intended as a strict requirement.

TABLE 2 Pct 1.1%  5.8%  1.5%  2.7%  3.1%  3.4%  2.9% Better 0.32 F VVS2— X X X BID 0.31 G VS1 None VG VG VG 375.50 Worse 0.30 H VS2 Faint G G GPct −2.0% −7.1% −1.2% −2.3% −3.4% −3.7% −2.9%

A basket trading feature can use the same trader bids to determine anoverall premium or discount for diamonds. Owners of diamond portfolioscan list an entire group, priced to the market, and enter an askingprice as a premium or discount. Table 2 depicts a shift in a singlemeasurable step in each direction (better/worse) from the targetdiamond. In some embodiments, the steps grow or decay in bid value one apersistent percentage basis (e.g., the pct rows are the same for eachmeasurable step). In other embodiments, each individual step has apredetermined pct value shift. Notably, some measurable steps have amore dramatic effect on bid value than others. In some cases, such ascarats, the number of measurable steps is significantly larger than thenumber of measurable steps of other properties. Thus, the changesbetween measurable steps vary in granularity.

FIG. 9 illustrates a set of parameters associated with diamond searchand bid 900. When searching for diamonds, a target diamond 902 isidentified, and then thresholds are lined up to indicate diamondcharacteristics that fall within the search. The market maker system cangenerate a dynamic centralized limit order book by selecting diamondswith properties within a threshold range of the properties of a targetdiamond 902. In a search for diamonds, the properties 904 may vary. Thefigure depicts a single row and with a single measurable step variationin a multi-dimensional matrix with roughly 16 million potentialvariations (e.g., the number of combinations of different properties ofdiamonds). The range of which each individual property may vary is setby threshold controls 906. An example order book generated by the marketmaker system around a target diamond (DSC BID) is depicted.

To generate a dynamic searching order book around a target diamond 902,the market maker system can access a database or table that stores, fora plurality of diamonds, a rating of each diamond according to each ofmultiple properties (such as carat weight, color, clarity, fluorescence,cut, symmetry, and polish) and a bid value for that diamond with atimestamp. The market maker system selects diamonds from the database ortable that have ratings within a threshold distance from at least onespecified rating of the target diamond and generates the order book withthe selected diamonds. The platform develops a dynamic value for eachpossible diamond based on existing diamond bids. Those diamonds closerto a given location in the multi-dimensional space are weighted moreheavily as affecting the bid value for that space. Diamonds having arecorded bid value more recently based on time stamp have a greaterweighed effect on the multi-dimensional space.

In some embodiments, the trader can select any properties 904 of thetarget diamond 902 that can vary when the market maker system isgenerating the dynamic order book. For example, the trader can specifythat the market maker system should retrieve any diamonds that have aclarity that differs by less than a threshold 906 amount from theclarity of the target diamond 902, but that other properties 904 shouldbe identical to the target diamond 902. The trader can specify that anynumber of the properties can deviate when the order book is generated.The trader can also indicate directions in which the selected diamondscan deviate. For example, the trader may indicate that he only wishes tosee diamonds that have the same or a higher symmetry rating than thetarget diamond 902, while the carat weight of the selected diamonds canbe both greater than and less than the weight of the target diamond.

The thresholds 906 by which the selected diamonds can vary from theproperties of the target diamond 902 may be values that are preset atthe market maker system, automatically chosen by the market makersystem, or chosen by the trader when generating the order book.Furthermore, the threshold may be represented as a numerical value or asa number of grades. For example, a numerical threshold can be applied tothe carat weight property of the target diamond; the market maker systemcan select, for example, any diamonds that differ from the targetdiamond's weight by no more than 0.1 carats. A grade number thresholdcan be applied, for example, to the property of cut. For example, if thetarget diamond's cut is rated “good,” the market maker system may selectany diamonds that are at most one grade level away from the targetdiamond 902, thus selecting any “very good” diamonds and any “fair”diamonds.

FIG. 10 a flowchart depicting a process of searching for a subset ofdiamonds based on a target diamond and thresholds. In step 1002, asearch engine system receives a plurality of diamonds. The diamonds eachhave ratings for a set of properties such as carats, color, clarity,flour, cut, symmetry, and polish. In step 1004, the search enginegenerates a search query. The search query is generally based on userinput, but may be automated based on system settings. The thresholds arebased on a number of measurable steps variance from the target diamond.The thresholds may differ based on whether the threshold is relevant todiamonds that are better or worse than the target diamond. For example,if the target diamond is 0.31 carats, a threshold associated with betterdiamonds may extend to 3 hundredths larger (e.g., three measurablesteps) while the threshold associated with worse diamonds extends only asingle hundredth (e.g., a single measurable step) smaller.

In step 1006, the search engine identifies a subset of the plurality ofdiamonds that match the target diamond or are within the propertycriteria thresholds. In step 1008, the search engine calculates a valuefor each diamond in the subset. Beginning from a value of the targetdiamond, each other diamond's value is calculated by applying a scalarto the current value. The for example, if a given diamond varies fromthe target diamond om two properties, a scalar for both of thosevariations is applied additively. The resulting figure is the value ofthe given diamond. The scalars are dynamically computed based onaccepted bids

In step 1010, the search engine groups the diamonds of the subset intogroups having a predetermined collective value. For example, a group ofdiamonds from the subset may have a value of $5,000 when combined. Thepurpose of the collective value is to group these diamonds into asingle, tamper resistant, sealed container (as described elsewhereherein). In step 1012, each collectively valued group of diamonds issealed into a standardized, tamper resistant, sealed container (e.g., aresin puck).

Sampling Process

FIG. 11 shows a process used to acquire a sufficiently large andstatistically valid sample of diamonds from an exchange or a group ofcompetitive diamond suppliers.

In an example embodiment, each sample of a predefined size (e.g., 600,900, or 1,200 stones) will contain distribution with an identical median(e.g., +/−2%) of long-term geological scarcity. The producer of thecommodity must pay “whatever it takes” to achieve such valid samples andinstigates market price discovery for every diamond in the process.

Each sample is public and recorded on a blockchain linked to the finalcommodity, so anyone can validate that the production is fair. Thediamonds of a sample are subsequently divided into nearly-equal scarcitysets of diamonds using a linear, quadratic, and integer programmingoptimizer, which is configured to minimize the total deviation of eachset of diamonds from the permanent median, subject to variousconstraints, such as a count of stones, and minimum total carat weight.

According to an embodiment of the sampling process, the sample shouldhave a Chi-Squared fit of 95% for each of the geological factors,proportional to long-term supply (i.e., scarcity) of the diamonds.

In step 1102, a plurality of geological and manufacturing factors ofdiamonds are identified. Geological factors include characteristics suchas carat weight, color, clarity, fluorescence of a diamond;manufacturing factors include characteristics such as cut, polish, andsymmetry of a diamond.

In step 1104, within a target range, each factor is divided into aplurality of grades and ranked. According to an example embodiment, if afactor is qualitative, the grades of the factor may be represented bynumbers before being ranked. For instance, grades of color can beconverted from D, E, F to 1, 2, 3.

In step 1006, based on scarcity of the diamonds, the historicalfrequency for each grade tabulated. Collectively, every possiblecombination of the grades of various factors potentially exceeds 16million combinations. Some grades, while low, and less frequent due tothe cost involved in grading and the overall value of the diamond. Thelowest grade is often relatively rare because the cost of grading thediamond is not worth having the grade. Because of the relative scarcity,some grades will have less available data, and the lack of data is takeninto account when deriving additional information therefrom.

In step 1108, using a computer having a program installed thereonconfigured to submit bids to purchase diamonds. One submits limitedorder bids for at least a substantial part of the possible number ofcombinations. In an example embodiment, bids are submitted for a largespread of possible combinations. Notably, there are over 16 millionpotential combinations. The objective to is to gather data points forwhich a multi-dimensional data structure storing diamond bid values maybe built. The data structure is more accurate and complete through useof a wide variety of diamonds.

In step 1110, as bids are accepted by sellers, the bids for theclosest-neighboring diamond types, by each factor, are withdrawn. Thesize of the withdrawal along each factor vector is proportional to thefrequency of that factor. As shown in the example below, when the bidfor the diamond in the first row is accepted, the bids for otherdiamonds with similar carat weight, color are withdrawn. As a resultthat not all of the over 16 million potential combinations of diamondproperties are necessary to establish the data structure, once a minimumviable set of diamond bids are accepted, pending diamond offers within athreshold variance of the accepted bids may be abandoned. The thresholddistance is predetermined from established thresholds using measurablesteps from obtained diamonds.

See the below example:

-   -   Carat, Color, Clarity, Fluorescence, Cut, Symmetry, Polish

1. Accepted Bid:

2. Withdrawn Bids: 0.30, G, VS1, None, VG, VG, VG

-   -   0.32, G, VS1, None, VG, VG, VG    -   0.30, 11, VS1, None, VG, VG, VG    -   0.31 H, VS1, None, VG, VG, VG    -   0.32, H, VS1, None, VG, VG, VG    -   0.31, F, VS1 None, VG, VG, VG    -   . . . , a total of 39

In step 1112, thereafter, bids for the remaining diamonds that aresufficiently different from the already purchased diamonds are raised.The process of withdrawing and raising the bids repeats until aphase-one sample (e.g., 50% of a valid sample size) is acquired.

In step 1114, steps 1110 and 1112 are repeated until a phase-one sample(e.g., 50% of a valid sample size) is acquired. In step 1116, a fitanalysis, such as a Chi-squared fit, is run for each factor of thesample, revealing any skews in the sample. Depending on the Chi-squaredfit, exclusion ranges for each factor are increased or decreased, andadditional diamonds are acquired via bidding, until a valid statisticalsample is obtained. The entire sample will be a valid statisticalsample, the median of which will match the median of the factor-weightedlong-term supply of diamonds within the target range. FIGS. 12 a and 12b illustrate example of the exclusion ranges for a two-factorcombination—the factors are color and carat weight.

In step 1120, the diamonds obtained via the bidding are registered on ablockchain data structure transactional space in groupings sealed intotamper proof containers.

In step 1122, the data for the sample of diamonds is then input into aLinear Programming and Mixed-Integer optimizer configured to sort alldiamonds of the sample into sets with the primary goal that the medianof each set is a minimal distance from the entire sample median on ascarcity basis (such as the gemological scarcity of diamonds), subjectto various constraints, such as the number of diamonds in each set and aminimum total carat weight. The output is the dynamic, multi-dimensionalspace describing bid values at each variation of a given diamond'sproperties that is used as a scaffold by the diamond search engine tooldescribed above.

The multi-dimensional space has a weighting for each measurable step ofvariance of a potential diamond. The weighting is measured in dollars,as a convenient unit that can be standardize the various properties ofdiamonds. While dollars are used as a weighting unit, any generic unitmay be similarity applied. The weighting unit enable a user of themulti-dimensional space data structure to identify the most importantproperties of a diamond at each potential measurable step of thatproperty. For example, the multi-dimensional space data structure modelsdistinctions in seemingly similar data, for example, the differencebetween 0.48 to 0.49 carats as opposed to 0.49 to 0.50 carats. Theexample refers to a property differing a single measurable step, ahundredth of a carat; however, the importance of the one measurable stepdifference varies based on where along a complete scale the differenceis. The example distinction and others are modeled by the data structurein a manner that provides comparison in a manner humans cannot measure.The data structure enables a comparison between any two diamonds,hypothetical or real, and what the greatest contributing properties areto the difference between those two diamonds.

FIG. 13 illustrates a diagrammatic representation of a computing device1300 within which a set of instructions for causing the computing deviceto perform the methods discussed herein may be executed. The computingdevice 1300 may be connected to other computing devices in a LAN, anintranet, an extranet, and/or the Internet. The computing device 1300may operate in the capacity of a server machine in client-server networkenvironment. The computing device 1300 may be provided by a personalcomputer (PC), a set-top box (STB), a server, a network router, switchor bridge, or any machine capable of executing a set of instructions(sequential or otherwise) that specify actions to be taken by thatmachine. Further, while only a single computing device is illustrated,the term “computing device” shall also be taken to include anycollection of computing devices that individually or jointly execute aset (or multiple sets) of instructions to perform the methods discussedherein.

The exemplary computing device 1300 may include a processing device(e.g., a general-purpose processor) 1302, a main memory 1304 (e.g.,synchronous dynamic random-access memory (DRAM), read-only memory(ROM)), a static memory 1306 (e.g., flash memory and a data storagedevice 1318), which may communicate with each other via a bus 1330.

The processing device 1302 may be provided by one or moregeneral-purpose processing devices such as a microprocessor, centralprocessing unit, or the like. In an illustrative example, the processingdevice 1302 may comprise a complex instruction set computing (CISC)microprocessor, reduced instruction set computing (RISC) microprocessor,very long instruction word (VLIW) microprocessor, or a processorimplementing other instruction sets or processors implementing acombination of instruction sets. The processing device 1302 may alsocomprise one or more special-purpose processing devices, such as anapplication specific integrated circuit (ASIC), a field programmablegate array (FPGA), a digital signal processor (DSP), a networkprocessor, or the like. The processing device 1302 may be configured toexecute the methods described herein, in accordance with one or moreaspects of the present disclosure.

The computing device 1300 may further include a network interface device1308, which may communicate with a network 1320. The computing device1300 also may include a video display unit 1310 (e.g., a liquid crystaldisplay (LCD) or a cathode ray tube (CRT)), an alphanumeric input device1312 (e.g., a keyboard), a cursor control device 1314 (e.g., a mouse)and an acoustic signal generation device 1316 (e.g., a speaker). In oneembodiment, video display unit 1310, alphanumeric input device 1312, andcursor control device 1314 may be combined into a single component ordevice (e.g., an LCD touch screen).

The data storage device 1318 may include a computer-readable storagemedium 1328 on which may be stored one or more sets of instructions(e.g., instructions of the methods described herein, in accordance withone or more aspects of the present disclosure) implementing any one ormore of the methods or functions described herein. Instructionsimplementing methods may also reside, completely or at least partially,within main memory 1304 and/or within processing device 1302 duringexecution thereof by computing device 1300, main memory 1304 andprocessing device 1302 also constituting computer-readable media. Theinstructions may further be transmitted or received over a network 1320via network interface device 1308.

While computer-readable storage medium 1328 is shown in an illustrativeexample to be a single medium, the term “computer-readable storagemedium” should be taken to include a single medium or multiple media(e.g., a centralized or distributed database and/or associated cachesand servers) that store one or more sets of instructions. The term“computer-readable storage medium” shall also be taken to include anymedium that is capable of storing, encoding, or carrying a set ofinstructions for execution by the machine and that cause the machine toperform the methods described herein. The term “computer-readablestorage medium” shall accordingly be taken to include, but not belimited to, solid-state memories, optical media, and magnetic media.

From the foregoing, it will be appreciated that specific embodiments ofthe invention have been described herein for purposes of illustration,but that various modifications may be made without deviating from thescope of the invention.

1. A sampling process for generation of a multi-dimensional datastructure of diamonds of a statistical sample, comprising: receiving aset of data describing a plurality of diamonds each having a distinctiveset of properties and a corresponding grade; based on the set of data,identifying a frequency for each corresponding grade of the plurality ofdiamonds; submitting a plurality of bids for a first subset of theplurality of diamonds, the first subset prioritizes inclusion ofdiamonds that have varied combinations of properties; in response toreceipt of accepted bids for the first subset of the plurality ofdiamonds, fitting the accepted bids to the multi-dimensional datastructure via a chi-squared fit as corresponding to each property ofdiamonds having accepted bids; and in response to said fitting, updatingthe multi-dimensional data structure based on the diamonds havingaccepted bids.
 2. The method of claim 1, further comprising: sealinggroups of diamonds of the diamonds having accepted bids into tamperproof containers recording each tamper proof container to a blockchaindata structure.
 3. The method of claim 1, further comprising: inresponse to a set of accepted bids, withdrawing a second subset of bidsfrom the submitted bids of the first subset wherein the second subsetincludes diamonds that have a threshold similarity of properties tothose diamonds having accepted bids.
 4. The method of claim 3, furthercomprising: in response to a set of accepted bids, increasing a bidamount on each of a third subset of bids from the submitted bids of thefirst subset wherein the third subset includes diamonds that have athreshold dissimilarity of properties to those diamonds having acceptedbids.
 5. The method of claim 1, wherein said fitting adjusts anexclusion range to establish a revised exclusion range.
 6. The method ofclaim 1, wherein the frequency for each corresponding grade influences aweight that diamonds of a given corresponding grade apply during saidfitting.
 7. The method of claim 1, further comprising: logging theaccepted bids in a blockchain data structure, wherein said fitting isperformed by retrieving accepted bid data from the blockchain datastructure.
 8. The method of claim 1, wherein the distinctive set ofproperties include any of: carat weight; color; clarity; fluorescence;cut; symmetry; or polish.
 9. The method of claim 1, wherein data in themulti-dimensional space decays in weight over time.
 10. A system forgeneration of a multi-dimensional data structure of diamonds of astatistical sample comprising: a network interface configured tocorrespond with a diamond market and receive a set of data describing aplurality of diamonds each having a distinctive set of properties and acorresponding grade, the network interface further configured to submitand receive acceptance of a plurality of bids for a first subset of theplurality of diamonds, the first subset prioritizes inclusion ofdiamonds that have varied combinations of properties; a processor; and amemory including instructions that when executed cause the processor to:based on the set of data, identify a frequency for each correspondinggrade of the plurality of diamonds; in response to receipt of acceptedbids for the first subset of the plurality of diamonds, fit the acceptedbids to the multi-dimensional data structure via a chi-squared fit ascorresponding to each property of diamonds having accepted bids; and inresponse to said fitting, update the multi-dimensional data structurebased on the diamonds having accepted bids.
 11. The system of claim 10,wherein the memory further includes instructions to cause the processorto: group diamonds of the diamonds having accepted bids into for sealinginto tamper proof containers record each tamper proof container to ablockchain data structure.
 12. The system of claim 1, wherein the memoryfurther includes instructions to cause the processor to: in response toa set of accepted bids, withdraw a second subset of bids from thesubmitted bids of the first subset wherein the second subset includesdiamonds that have a threshold similarity of properties to thosediamonds having accepted bids.
 13. The system of claim 2, wherein thememory further includes instructions to cause the processor to: inresponse to a set of accepted bids, increase a bid amount on each of athird subset of bids from the submitted bids of the first subset whereinthe third subset includes diamonds that have a threshold dissimilarityof properties to those diamonds having accepted bids.
 14. The system ofclaim 10, wherein the frequency for each corresponding grade influencesa weight that diamonds of a given corresponding grade apply during saidfitting.
 15. The system of claim 10, wherein the memory further includesinstructions to cause the processor to: log the accepted bids in ablockchain data structure, wherein said fitting is performed byretrieving accepted bid data from the blockchain data structure.
 16. Thesystem of claim 10, wherein data in the multi-dimensional space decaysin weight over time.
 17. A method comprising: receiving a set of datadescribing a plurality of diamonds each having a distinctive set ofproperties and a corresponding grade; submitting a plurality of bids fora first subset of the plurality of diamonds, the first subsetprioritizes inclusion of diamonds that have varied combinations ofproperties; generating a multi-dimensional data structure that compareseach diamond to each other diamond via a universal unit based onaccepted bid values, the multi-dimensional data structure including afield for each property of each combination of properties of diamonds;in response to receipt of accepted bids for the first subset of theplurality of diamonds, fitting the accepted bids to themulti-dimensional data structure via a chi-squared fit as correspondingto each property of diamonds having accepted bids; based on the set ofdata, identifying a frequency for each corresponding grade of theplurality of diamonds; compensating for the frequency of eachcorresponding grade with respect to weighting data fit to themulti-dimensional data structure; and in response to said fitting,updating the multi-dimensional data structure based on the diamondshaving accepted bids.
 18. The method of claim 17, further comprising:sealing groups of diamonds of the diamonds having accepted bids intotamper proof containers recording each tamper proof container to ablockchain data structure.
 19. The method of claim 17, furthercomprising: in response to a set of accepted bids, withdrawing a secondsubset of bids from the submitted bids of the first subset wherein thesecond subset includes diamonds that have a threshold similarity ofproperties to those diamonds having accepted bids.
 20. The method ofclaim 19, further comprising: in response to a set of accepted bids,increasing a bid amount on each of a third subset of bids from thesubmitted bids of the first subset wherein the third subset includesdiamonds that have a threshold dissimilarity of properties to thosediamonds having accepted bids.